During the 21-22 January 2005 magnetic storm, the FAST satellite observed warm (< few keV) ions in discrete energy bands on the dayside at ~3000 km altitude for more than 6.5 hours. We suggest that the ionospheric energy-banded ions represent the low-altitude edge of the warm plasma cloak observed simultaneously by magnetospheric satellites. This is a clear example of the multi-species ion energy bands (10 eV to several keV) observed during strong magnetic storms by the FAST satellite, stretching from the diffuse auroral region to the plasmapause with lifetimes up to 12 hours. The close association of these energy-banded ions with magnetic storms, their broad latitudinal extent, and the presence of multiple ion species in the same energy band, rather than at the same velocity, indicate that this is a distinct phenomenon from other types of energy-banded ions. During the 21-22 January 2005 magnetic storm, the dayside ion energy band structures, centered at 10 eV (H+), 40 eV (H+ and He+), and 160 eV (H+, He+, and O+), were consistent with a “time-of-flight and velocity filter” formation process acting on a near-cusp, impulsive outflow of a < 200 eV multi-species ion-source population, poleward and in the same hemisphere as FAST. Understanding the sources and dynamics of warm energy-banded ions and their linkage to the warm plasma cloak is important because during superstorms these ions are transported deep into the plasmasphere to L values as low as L~1.2 in the dawn sector, significantly altering the energetics of the mid-latitude ionosphere